DGAP-News

Successful business performance for KWS - Full-year targets confirmed after end of the third quarter 2015/2016 - Seite 2

area in many regions, the Corn Segment grew its net sales in the first
three quarters to EUR648.5 (596.9) million, an increase of 8.6% over the
previous year. Despite the depreciation of the Brazilian real, net sales in
Brazil grew in euro terms. Business in North America, helped in part by
exchange rate effects, and the positive trend in rapeseed business in
Europe also contributed to the rise in net sales. KWS was largely able to
defend its market shares in Europe, despite regional drops in net sales,
such as in France. The planned high level of expenditure for expanding
distribution and intensifying breeding work, acquisition of the remaining
shares in RIBER KWS SEMENTES in Brazil, as well as currency developments
had a negative influence on segment income. The segment's income at the end
of the third quarter was thus down year on year at EUR71.4 (87.8) million.

Net sales at the Sugarbeet Segment rose by 14.8% in the first nine months
of the current fiscal year to EUR331.4 (288.6) million. KWS was able to
grow net sales in many markets. In Eastern Europe and Turkey in particular,
market share were gained and business in North American also went well
thanks to constantly high variety performance. In Europe, the increase in
cultivation areas also had a positive effect on net sales development. The
segment's income rose by 22.2% to EUR108.3 (88.6) million. Positive
currency effects from the performance of the US dollar and lower write-
downs of receivables also contributed to this.

The Cereals Segment's net sales after the first nine months of the fiscal
year were EUR104.3 (98.2) million and thus slightly up year on year,
despite declining net sales from hybrid rye. This increase is largely
attributable to the acquisition of the remaining shares in MOMONT (SOCIETÉ
DE MARTINVAL S.A.) last year and the positive net sales trend for winter
barley. Due to the increased expenditure on research & development and
distribution in line with planning, as well as the lower contribution
margin from hybrid rye business, the segment's income after the third
quarter was EUR16.7 million and thus below that of the previous year
(EUR20.9 million).

The net sales in the Corporate Segment are generated primarily by the
farms. In the first nine months of the fiscal year they totaled EUR3.3
(3.4) million. In addition, all cross-segment costs for the central
functions of the KWS Group and basic research expenditure are allocated to
this segment. The segment's income is thus always negative, and was
−EUR43.4 (−40.5) million.

Forecast: full-year targets of KWS Group are likely to be met